Magyar Telekom to launch LTE in January 2012
Hungarian telco launching test network with 80 base stations.
Hungary\'s largest telecommunications company, Magyar Telekom Nyrt, will launch long-term evolution mobile Internet for the public on Jan 1, Chief Executive Christopher Mattheisen said Friday.
The development is part of a 30 billion forint ($135.7 million) program announced in May.
LTE is a wireless broadband technology that supports roaming Internet access via mobile phones and devices. It has been labeled fourth generation, or 4G, technology because of its superior download speeds and quality to existing 2G and 3G.
Magyar Telekom, the Hungarian subsidiary of Germany\'s Deutsche Telekom AG, is launching a test phase of 4G technology with 80 LTE base stations. The number will be tripled by the end of the year, Mattheisen said at a press conference.
The company is cooperating with telecoms equipment makers L.M. Ericsson Telephone Co. of Sweden and the U.S.\'s Cisco Systems Inc. in the expansion.
"Right now between 10% and 20% of our customers have some kind of device capable of using the Internet but almost 70% of our handset sales in 2011 have been smart phones, so we\'re very hopeful," Mattheisen told Dow Jones Newswires on the sidelines of the event.
However, he said the poor state of the Hungarian economy is a concern for Magyar Telekom and the telecoms industry in general.
"People have no money in their pockets," Mattheisen said.
Nevertheless, he said communications services have become essential for the general public so he expects Magyar Telekom to be able to maintain its market-leading position and attract new customers.